I've seen these rumors floating around the internet and I don't think it's going to happen. But then again, BMW has pulled a few surprising stunts in the past few years, so who knows. If it does happen though, I don't think it would be made this year. Normally, they have news about a new BMW at least half a year before it's launch. Every single models that's has been released people have known about for a while before its launch. This one though doesn't seem to be confirmed. Maybe they'll pull a fast one on us.

I hope it doesn't come out though, honestly. What would be the point of having two performance versions (335tii and M3) of a 3 series? It would just make car buying that much harder, and if it does come out, surely they're going to mod it in some way and that would be way too close to M3 territory, so all those people who plunked down all that money for an M3 are going to be out of luck.

What it looks like is going to happen is that they are using the "tii" badging to roll out their new performance parts divsion. Evidently you are going to be able to purchase BMW performance parts direct from your dealership, and have it all done in-house. Exhausts, intakes, short-throw kits, carbon fiber stuff, racing seats, new suspension; you name it and BMW wants to sell it to you.